We try to generate 20 per cent returns

R Srinivasan, the fund manager of SBI Small & Midcap Fund, says the willingness of the fund house to spend time and effort the sparsely covered space in search of excess returns helped. The fund is the top performer over three years in the small-cap category. What has led to this outperformance? For one, the whole category has done well; there has been some polarisation across the market in favour of small and mid caps and this trend helped us as well. Two, the fund started with a small corpus which enabled it to go lower down the capitalisation curve, where some excellent research-arbitrage opportunities existed. Third and equally important was our willingness, a